Free Research Report as Cleveland-Cliffs’ Revenue Surged 52%; EPS Rocketed 171%

Stock Monitor: Materion Post Earnings Reporting

LONDON, UK / ACCESSWIRE / July 30, 2018 /

If you want access to our free earnings report on Cleveland-Cliffs Inc. (NYSE: CLF), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=CLF. Cleveland-Cliffs reported its second quarter fiscal 2018 operating and financial results on July 20, 2018. The mining company outperformed top- and bottom-line expectations. Additionally, the Company raised its sales volume expectations by FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Materion Corporation (NYSE: MTRN), which also belongs to the Basic Materials sector as the Company Cleveland-Cliffs. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Cleveland-Cliffs most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For the second quarter 2018, Cleveland-Cliffs reported consolidated revenues of $714.3 million compared to revenues of $471.3 million in Q2 2017. The Company’s reported numbers beat analysts’ estimates of $629.2 million.

During Q2 2018, Cleveland-Cliffs’ cost of goods sold was $430 million compared to $327 million reported in Q2 2017. The Company recorded income from continuing operations of $229 million, or $0.76 per diluted share, in the reported quarter compared to $84 million, or $0.28 per diluted share, in the prior year’s same quarter.

For Q2 2018, Cleveland-Cliffs reported adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of $276 million, which is more than double compared to adjusted EBITDA of $136 million in Q2 2017. This was the Company’s best quarterly results since 2014.

Cleveland-Cliffs’ net income was $165.1 million, or $0.76 per diluted share, in Q2 2018 which included a $64 million, or $0.21 per diluted share, loss from discontinued operations, primarily associated with the Company’s Asia Pacific Iron Ore assets. The Company had reported earnings of $31.8 million, or $0.28 per share, in Q2 2017. Cleveland-Cliffs’ earnings surpassed Wall Street’s estimates of $0.56 per share.

Operating Results

During Q2 2018, Cleveland-Cliffs’ US Iron Ore (USIO) pellet sales volume surged 38% to 6.0 million long tons compared to Q2 2017 volume of 4.3 million long tons, driven by increased customer demand and the impact of the adoption of the new revenue recognition accounting standard. USIO generated $301 million in adjusted EBITDA for the reported quarter, a 5-year high watermark for this business compared to $162 million in the prior year quarter. This remarkable improvement was a result of increased sales volume due to higher actual demand for pellets from the Company’s customers as well as the higher prices customers paid for its pellets

For Q2 2018, Cleveland-Cliffs’ realized revenues per ton of $112.60 increased 16% on a y-o-y basis, primarily as a result of increased steel pricing and pellet premiums, which are magnified by favorable contract structures.

Cleveland-Cliffs’ cash cost of goods sold and operating expense rate in (USIO) was $62.32 per long ton in Q2 2108 compared to $59.30 per long ton in Q2 2017. The increase was driven by higher costs related to product mix, energy rates, repairs, and royalties as well as higher employee-related expenses.

US Iron Ore Outlook (Long Tons)

Cleveland-Cliffs stated that based on the assumption that iron ore prices, steel prices, and pellet premiums will average for the remainder of 2018 their respective year-to-date averages, the Company expects to realize USIO revenue rates in the range of $105 to $110 per long ton.

As a result of strong market demand for pellets in the Great Lakes, Cleveland-Cliffs has increased its full-year 2018 sales volume expectation by 500,000 long tons to 21 million long tons. The Company re-affirmed its production volume expectation of 20 million long tons for FY18.

Stock Performance Snapshot

July 27, 2018 – At Friday’s closing bell, Cleveland-Cliffs’ stock marginally dropped 0.93%, ending the trading session at $10.67.

Volume traded for the day: 13.85 million shares, which was above the 3-month average volume of 10.81 million shares.

Stock performance in the last month – up 27.63%; previous three-month period – up 46.36%; past twelve-month period – up 45.37%; and year-to-date – up 47.99%

After last Friday’s close, Cleveland-Cliffs’ market cap was at $3.22 billion.

Price to Earnings (P/E) ratio was at 22.32.

The stock is part of the Basic Materials sector, categorized under the Industrial Metals & Minerals industry.

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